Still using CyanogenMod 7 (Android 2.3.7) so I guess I'm safe

I could flash an Android 4 ROM, but mine is stable... if it's not broken, don't fix it.
EDIT:
I just checked, there are actually the same options in my ROM.
I'm 100% sure it erases the external, not built into the phone SD though (the one I added by inserting it in a slot under the battery cover). Maybe it's an Android 4.0 bug?
EDIT2:
If you have a card reader on your PC or Mac, I recommend this to clean up / format / erase your SD cards:
http://www.sdcard.org/downloads/formatter_3/
Way more efficient than any build in eraser, and it can even reclaim some unused space (Format Size Adjustment).
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SWTOR: 50 Jedi Shadow (Tank), 50 Sith Marauder (Annihilation).
LOTRO: Lifetime account, playing very casually.
WoW: Both accounts canceled for now.
GW2: Future Warrior.